The developer of the well-known video game Fortnite, Epic Games, has agreed to pay $520 million to resolve claims made by federal regulators that it deceived kids into making in-game purchases and broke privacy laws.
The Federal Trade Commission announced on Monday that the video game firm would forfeit $245 million in consumer refunds in addition to $275 million for breaking a federal statute protecting the privacy of youngsters.
FTC Chair Lina Khan said in a statement that "Epic employed privacy-invasive default settings and deceptive interfaces that deceived Fortnite users, especially teenagers and minors."
The $245 million constitutes a record refund for a gaming matter, while the $275 million equals the biggest fine the agency has ever received for breaking an FTC rule.
Utilizing "dark patterns" to file false charges
The FTC filed a lawsuit against Epic Games last year, alleging that the North Carolina-based business had amassed personal data about young users without getting permission from their parents. The FTC had also accused Epic Games of using so-called dark patterns, or deceptive designs, to lure young gamers into making in-game purchases in a separate legal case.
Dark patterns are misleading web strategies that persuade people to take actions they did not mean to.
The FTC warned that in some cases, players could be charged for a purchase simply by pressing a single button to try to bring up a game from sleep mode. According to the FTC, players may also be charged for a purchase while the game was loading or by touching a nearby button while merely attempting to preview an item.
Director of the FTC's Bureau of Consumer Protection Samuel Levine stated in the statement, "Epic put children and teens at risk through its inadequate privacy practices and cost consumers millions in illegal charges through its use of dark patterns."
The payment, according to Epic Games, is being made to allay worries about "previous designs of the Fortnite item shop and refund processes."
The business claimed that "statutes created decades ago don't dictate how gaming ecosystems should operate." "The laws have not changed, but the way they are applied has changed, and traditional business techniques no longer work."
According to the corporation, the FTC would give the money "to Epic consumers at their discretion."
In a statement released on Monday, Epic added that it agreed to the settlement "in order to maintain Epic's leadership in consumer protection and to give our players the greatest possible experience."
No developer makes a game with the purpose of appearing here, it continued.